1995 Wisconsin Act 329

218.01 (2) (h) 2. Provided the licensor has reasonable cause to doubt the financial responsibility of the applicant or licensee or the compliance by the applicant or licensee with this section, the licensor may require the applicant or licensee to furnish and maintain a bond in the form, amount and with the sureties it approves, but not less than $5,000, nor more than $100,000, conditioned upon the applicant or licensee complying with the statutes applicable to the licensee and as indemnity for any loss sustained by any person by reason of any acts of the licensee constituting grounds for suspension or revocation of the license under this section. The bonds shall be executed in the name of the department of transportation for the benefit of any aggrieved parties; provided that the aggregate liability of the surety to all such parties shall, in no event, exceed the amount of the bond. The bonding requirements in this subdivision shall not apply to manufacturers, factory branches, and their agents and is in addition to the bond or letter of credit required of a motor vehicle dealer under par. (bb) 1.

329,21 Section 21 . 218.01 (2) (k) 3. of the statutes is amended to read:

218.01 (2) (k) 3. Has had experience or training in, or is otherwise qualified for, selling or leasing motor vehicles.

329,22 Section 22 . 218.01 (2) (k) 5. of the statutes is amended to read:

218.01 (2) (k) 5. Is reasonably familiar with the motor vehicle sales or consumer lease laws or contracts that the applicant is proposing to solicit, negotiate or effect.

329,23 Section 23 . 218.01 (3) (a) 5. of the statutes is amended to read:

218.01 (3) (a) 5. Wilfully defrauding any retail buyer, lessee or prospective lessee to the buyer's, lessee's or prospective lessee's damage.

329,24 Section 24 . 218.01 (3) (a) 6. of the statutes is amended to read:

218.01 (3) (a) 6. Wilful failure to perform any written agreement with any retail buyer, lessee or prospective lessee.

329,25 Section 25 . 218.01 (3) (a) 8. of the statutes is amended to read:

218.01 (3) (a) 8. Having made a fraudulent sale, consumer lease, prelease agreement, transaction or repossession.

329,26 Section 26 . 218.01 (3) (a) 9. of the statutes is amended to read:

218.01 (3) (a) 9. Fraudulent misrepresentation, circumvention or concealment through whatsoever subterfuge or device of any of the material particulars or the nature thereof required hereunder to be stated or furnished to the retail buyer, lessee or prospective lessee.

329,27 Section 27 . 218.01 (3) (a) 10. of the statutes is amended to read:

218.01 (3) (a) 10. Employment of fraudulent devices, methods or practices in connection with compliance with the statutes with respect to the retaking of goods under retail instalment contracts or consumer leases and the redemption and resale or subsequent lease of such goods.

329,28 Section 28 . 218.01 (3) (a) 13. of the statutes is amended to read:

218.01 (3) (a) 13. Having sold a retail instalment contract or consumer lease to a sales finance company not licensed hereunder.

329,29 Section 29 . 218.01 (3) (a) 14. of the statutes is amended to read:

218.01 (3) (a) 14. Having violated any law relating to the sale, lease, distribution or financing of motor vehicles.

329,30 Section 30 . 218.01 (3) (a) 18. of the statutes is amended to read:

218.01 (3) (a) 18. Having accepted an order or contract of purchase or a contract from a buyer or a consumer lease or prelease agreement from a lessee or prospective lessee if such arrangement results in the practice of bushing. For the purpose of this section, “bushing" means, with respect to an order or contract of purchase, the practice of increasing the selling price of a motor vehicle above that originally quoted the purchaser as evidenced by a purchase order or contract which has been signed by both the purchaser and dealer licensee and, with respect to a consumer lease or prelease agreement, the practice of increasing the capitalized cost above that originally quoted the lessee or prospective lessee as evidenced by a consumer lease or prelease agreement which has been signed by both the lessee or prospective lessee and the dealer licensee.

329,31 Section 31 . 218.01 (3) (a) 19. of the statutes is amended to read:

218.01 (3) (a) 19. Having advertised, printed, displayed, published, distributed, broadcast or televised or caused or permitted to be advertised, printed, displayed, published, distributed, broadcast or televised in any manner whatsoever, any statement or representation with regard to the sale, lease or financing of motor vehicles which is false, deceptive or misleading.

329,32 Section 32 . 218.01 (3) (a) 20. of the statutes is amended to read:

218.01 (3) (a) 20. Having set up, promoted or aided in the promotion of a plan by which motor vehicles are sold or leased to a person for a consideration and upon the further consideration that the purchaser or lessee agrees to secure one or more persons to participate in the plan by respectively making a similar purchase or lease and in turn agreeing to secure one or more persons likewise to join in said plan, each purchaser or lessee being given the right to secure money, credits, goods or something of value, depending upon the number of persons joining in the plan.

329,33 Section 33 . 218.01 (3) (a) 21. of the statutes is amended to read:

218.01 (3) (a) 21. Being a dealer who keeps open the dealer's place of business on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing in this subdivision shall apply to any person who conscientiously believes that the 7th day of the week, from sunset Friday to sunset Saturday, should be observed as the Sabbath and who actually refrains from conducting or engaging in the business of buying, leasing, selling or offering for lease or sale motor vehicles, or performing other secular business on that day.

329,34 Section 34 . 218.01 (3) (a) 25. of the statutes is amended to read:

218.01 (3) (a) 25. Having violated chs. 421 to 427 or 429.

329,35 Section 35 . 218.01 (3) (a) 29. of the statutes is amended to read:

218.01 (3) (a) 29. Being an inactive business, as evidenced by 3 or less motor vehicle purchases and sales or consumer leases during the prior year licensing period.

329,36 Section 36 . 218.01 (3) (bf) 1. of the statutes, as affected by 1995 Wisconsin Act 27, is renumbered 218.01 (3) (bf) 1. a. and amended to read:

218.01 (3) (bf) 1. a. The Except as provided in subd. 1. b., the department of transportation shall not license as a dealer an applicant for the sale or lease of motor vehicles at retail unless such applicant owns or leases a vehicle display lot and a permanent building wherein there are facilities to display automobiles and motorcycles motor vehicles and facilities to repair functional and nonfunctional parts of motor vehicles and where replacement parts, repair tools and equipment to service motor vehicles are kept, and at which place of business shall be kept and maintained the books, records and files necessary to conduct the business. A residence, tent or temporary stand is not a sufficiently permanent place of business within the meaning of this paragraph.

329,37 Section 37 . 218.01 (3) (bf) 1. b. of the statutes is created to read:

218.01 (3) (bf) 1. b. The requirements in subd. 1. a. that an applicant own or lease a vehicle display lot and that the permanent building owned or leased by the applicant contain facilities to display motor vehicles do not apply to persons who are engaged only in the leasing of motor vehicles and who do not maintain an inventory of motor vehicles offered for lease.

329,38 Section 38 . 218.01 (5) (a) of the statutes is amended to read:

218.01 (5) (a) The licensor shall promote the interests of retail buyers and lessees of motor vehicles relating to default, delinquency, repossession or collection charges and the refund of the finance charge and insurance premium on prepayment of the instalment contract or consumer lease. It may define unfair practices in the motor vehicle industry and trade between licensees or between any licensees and retail buyers, lessees or prospective lessees of motor vehicles, but may not limit the price at which licensees may sell, assign or transfer receivables, contracts or other evidence of any obligation arising out of an instalment sale or consumer lease made under this section.

329,39 Section 39 . 218.01 (6) (b) (intro.) of the statutes, as affected by 1995 Wisconsin Act 27, is renumbered 218.01 (6) (b) and amended to read:

218.01 (6) (b) Prior to or concurrent with any instalment sale, the seller shall deliver to the buyer a written statement describing clearly the motor vehicle sold to the buyer, the cash sale price, the cash paid down by the buyer, the amount credited the buyer for any trade-in and a description of the trade-in, the cost to the retail buyer of any insurance, the amount financed which may include the cost of insurance, sales and use taxes, the amount of the finance charge, the amount of any other charge specifying its purpose, the total of payments due from the buyer, the terms of the payment of such total, the amount and date of each payment necessary finally to pay the total and a summary of any insurance coverage to be effected. The division of banking may determine the form of the statement. If a written order is taken from a prospective purchaser in connection with any instalment sale, the written statement shall be given to the purchaser prior to or concurrent with the signing of the order by the purchaser. The finance charge in a retail instalment sale made prior to April 6, 1980, however computed, excluding the cost of insurance shall not exceed the amount computed on the basis of the following annual percentage rates:

329,40 Section 40 . 218.01 (6) (b) 1. to 8. of the statutes are repealed.

329,41 Section 41 . 218.01 (6) (bm) and (bn) of the statutes are repealed.

329,42 Section 42 . 218.01 (6) (d) of the statutes is amended to read:

218.01 (6) (d) A violation of par. (a), (b), (bm), (bn), or (bp) or (k) bars recovery of any finance charge by the seller, or an assignee of the seller who, at the time of the assignment, had knowledge of the violation, in any suit upon a sales contract arising from the sale where the violation occurred.

329,43 Section 43 . 218.01 (6) (j) of the statutes is repealed.

329,44 Section 44 . 218.01 (6x) of the statutes is created to read:

218.01 (6x) Prelease agreements. (a) Every prelease agreement shall be in writing, which shall contain all of the agreements of the parties with respect to entering into a consumer lease and shall be signed by both parties.

(b) No prelease agreement shall be binding on a prospective lessee unless all of the following apply:

1. All of the information required to be disclosed in a consumer lease under s. 429.203 (3) and (4) is disclosed in writing to the prospective lessee before the execution of the prelease agreement by the prospective lessee.

2. The prelease agreement contains, directly above the place for the prospective lessee's signature, a notice in substantially the following language in bold-faced capital letters of not less than 10-point type:

NOTICE TO PROSPECTIVE LESSEE

a. THIS IS A BINDING PRELEASE AGREEMENT. BY SIGNING THIS PRELEASE AGREEMENT, YOU WILL BECOME OBLIGATED TO ENTER INTO AN AGREEMENT WITH THE PROSPECTIVE LESSOR TO LEASE THE MOTOR VEHICLE DESCRIBED IN THIS PRELEASE AGREEMENT WHEN IT IS AVAILABLE AND READY TO BE DELIVERED TO YOU, UPON LEASE TERMS DISCLOSED IN THIS PRELEASE AGREEMENT OR IN THE ATTACHED DISCLOSURE STATEMENT, IF ANY.

b. DO NOT SIGN THIS PRELEASE AGREEMENT BEFORE YOU READ IT, INCLUDING THE WRITING ON THE REVERSE SIDE.

c. DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.

d. YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN.

(c) An exact copy of the prelease agreement shall be furnished by the prospective lessor to the prospective lessee at the time that the prospective lessee signs the prelease agreement. The prospective lessee's copy of the prelease agreement shall contain the signature of the prospective lessor identical with the signature on the original prelease agreement. No prelease agreement shall be signed in blank except that a detailed description of the motor vehicle, including the serial or identification number, that is not available at the time of execution of the prelease agreement may be omitted.

(d) A prospective lessor may cancel a prelease agreement that, with regard to the lease terms disclosed in the prelease agreement, is contingent upon approval of the prospective lessee's credit by a sales finance company to whom the prospective lessor intends to assign the consumer lease, if the prelease agreement contains a provision requiring the prospective lessor to give the prospective lessee written notice of such cancellation within 10 business days of execution of the prelease agreement and the notice is given to the prospective lessee.

(e) No prelease agreement may contain a clause which, upon nonacceptance of the motor vehicle by the prospective lessee, would subject the prospective lessee to a penalty greater than 5% of the capitalized cost of the vehicle.

329,45 Section 45 . 218.01 (7b) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

218.01 (7b) (title) Purchase or lease of motor vehicle by minor. No minor shall purchase or lease any motor vehicle unless the minor, at the time of purchase or lease, submits to the seller or lessor a statement verified before a person authorized to administer oaths and made and signed by either parent of the purchaser or lessee, if such parent has custody of the minor or, if neither parent has custody, then by the person having custody, setting forth that the purchaser or lessee has consent to purchase or lease the vehicle. The signature on the statement shall not impute any liability for the purchase price of the motor vehicle or for any payments under the consumer lease to the consenting person. The statement shall not adversely affect any other arrangement for the assumption of liability for the purchase price or any lease payments which the consenting person may make. The If a motor vehicle is purchased by a minor, the signed statement shall accompany the application for a certificate of title and shall be filed by the department of transportation with the application. Failure to obtain the consent or to forward it, together with the application for a certificate of title in the event of the purchase of a motor vehicle, shall not void the contract of sale or consumer lease of a motor vehicle in the hands of an innocent holder, without notice, for value and in the ordinary course of business. Any person who sells or leases a motor vehicle to a minor with knowledge of such fact without procuring such a statement may be fined not more than $200 or imprisoned not more than 6 months or both.

329,46 Section 46 . 218.01 (9) (b) of the statutes is amended to read:

218.01 (9) (b) Any retail buyer, lessee or prospective lessee suffering pecuniary loss because of a violation by a licensee of sub. (3) (a) 4., 5., 6., 8., 9., 10., 11., 18., 25. or 31. may recover damages for the loss in any court of competent jurisdiction together with costs, including reasonable attorney fees.

329,47 Section 47 . 218.04 (5) (a) 5. of the statutes is amended to read:

218.04 (5) (a) 5. The licensee or any officer or employe of it has violated chs. 421 to 427 and 429.

329,47m Section 47m. 341.145 (4) of the statutes is amended to read:

341.145 (4) Each personalized registration plate issued shall be reserved for the recipient or, in the case of a leased vehicle, for the lessee in succeeding registration periods and shall not be duplicated for issuance to any other person if the recipient or lessee maintains the plate, unless the recipient or, in the case of a leased vehicle, the lessee authorizes the issuance of the plate to another person. If the recipient or, in the case of a leased vehicle, the lessee does not maintain the plate for 2 successive years which are not plate issuance years or if the recipient or lessee does not specifically request reissuance of the personalized registration plate by the end of the month in which the plate expires in a plate issuance year, the department may issue the personalized registration plate to another applicant. Registration plate numbers issued as special numbers prior to January 1, 1979, will be reserved for issuance as personalized registration plates in the same manner as prescribed for personalized registration plates in this section.

329,48 Section 48 . 344.51 (title) of the statutes is amended to read:

344.51 (title) Financial responsibility for domestic rented or leased vehicles.

329,49 Section 49 . 344.51 (1) of the statutes is amended to read:

344.51 (1) No person may for compensation rent or lease any motor vehicle to be operated by or with the consent of the person renting or leasing the vehicle unless there is filed with the department a good and sufficient bond or policy of insurance issued by an insurer authorized to do an automobile liability insurance or surety business in this state. The bond, policy or certificate shall provide that the insurer which issued it will be liable for damages caused by the negligent operation of the motor vehicle in the amounts set forth in s. 344.01 (2) (d). No person complying with this subsection, and no person acquiring an interest in any contract for the rental or leasing of a motor vehicle for which any other person has complied with this subsection, is liable for damages caused by the negligent operation of the motor vehicle by another person.

329,50 Section 50 . 344.51 (2) of the statutes is amended to read:

344.51 (2) Any person failing to comply with this section is directly liable for all damages caused by the negligence of the person operating such rented or leased vehicle to the extent that such liability could have been established if this section had been complied with, but such liability may not exceed the limits set forth in s. 344.01 (2) (d) with respect to the acceptable limits of liability when furnishing proof of financial responsibility.

329,51 Section 51 . 409.201 of the statutes is amended to read:

409.201 General validity of security interest. Except as otherwise provided by chs. 401 to 411 a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors. Nothing in this chapter validates any charge or practice illegal under any statute or regulation thereunder governing usury, small loans, retail instalment sales, or the like, or under chs. 421 to 427 and 429, or extends the application of any such statute or regulation to any transaction not otherwise subject thereto.

329,52 Section 52 . 409.203 (5) of the statutes is amended to read:

409.203 (5) A transaction, although subject to this chapter, is also subject to chs. 138, 421 to 427, and 429 and s. 182.025, or any other similar statute which may be applicable to the particular transaction, and in the case of conflict between this chapter and any such statute, such statute controls. Failure to comply with any applicable statute has only the effect which is specified therein.

329,53 Section 53 . 421.103 (2) of the statutes is amended to read:

421.103 (2) Unless terms used in chs. 421 to 427 are defined by particular provisions of chs. 421 to 427, they shall have the meaning given them in chs. 401 to 411 and 429, if they are defined in chs. 401 to 411 and 429.

329,54 Section 54 . 421.201 (5) of the statutes is amended to read:

421.201 (5) Subchapters I and II of ch. 425, relating to creditors' remedies, including applicable penalties, apply to actions or other proceedings brought in this state to enforce rights arising from consumer transactions or extortionate extensions of credit, wherever made, but conduct, action or proceedings to recover collateral or goods subject to a motor vehicle consumer lease shall be governed by the law of the state where the collateral is or goods subject to a motor vehicle consumer lease are located at the time of its recovery unless the collateral is or goods subject to a motor vehicle consumer lease are owned by a Wisconsin resident, who has removed it the collateral or goods from this state only for purposes of transportation to or use in the resident's employment or for temporary periods which do not exceed 15 days.

329,55 Section 55 . 421.202 (6) of the statutes is amended to read:

421.202 (6) Consumer credit transactions in which the amount financed exceeds $25,000, motor vehicle consumer leases in which the total lease obligation exceeds $25,000 or other consumer transactions in which the cash price exceeds $25,000;

329,56 Section 56 . 421.202 (7) of the statutes is amended to read:

421.202 (7) Transactions subject to ch. 428; or

329,57 Section 57 . 421.202 (8) of the statutes is amended to read:

421.202 (8) Transactions in securities accounts or securities transactions by or with a broker-dealer, as defined in s. 551.02 (3), licensed under ch. 551.; or

329,58 Section 58 . 421.202 (9) of the statutes is created to read:

421.202 (9) Leases of motor vehicles that are not motor vehicle consumer leases under s. 421.301 (25m).

329,59 Section 59 . 421.301 (20) (intro.) of the statutes is amended to read:

421.301 (20) (intro.) “Finance charge" means the sum of all charges, payable directly or indirectly by the customer as an incident to or as a condition of the extension of credit, whether paid or payable by the customer, the creditor or any other person on behalf of the customer to the creditor or to a 3rd party unless the creditor had no notice or knowledge of the charges paid or payable to the 3rd party. The term does not include any charge with respect to a motor vehicle consumer lease. The term includes the following types of charges to the extent they are not permitted additional charges under s. 422.202 or , delinquency charges (under s. 422.203 ) or deferral charges (under s. 422.204):